Wave Money accused of overcharge for cash transfers in Arakan

By DMG 19 Mar 2021

DMG Newsroom
19 March 2021, Sittwe

Some Wave Money agents in Arakan State are allegedly overcharging customers for money transfer services, those who have reportedly been overcharged told DMG.

Wave Money is a joint-venture between Norwegian telecom operator Telenor, Singapore-listed Yoma Strategic Holdings and Yoma Bank, and is among leading mobile financial service providers in Myanmar, with over 65,000 Wave Money shops located across 300 townships in the country.

Citing the lack of internet connectivity and closures of banks, Wave Money agents are charging higher amounts than the fixed rates set for money transfers, said a Mrauk-U resident who did not want to be named.

“While mobile internet was banned in Arakan State, agents overcharged too. And we have to pay the almost same charge now [even after the internet ban was lifted in February],” he said.

DMG research found that customers were reportedly being overcharged in Sittwe, Mrauk-U, Ramree, Minbya and Maungdaw, among other townships.

Though Wave Money has set fixed rates proportional to the amount of cash transfers, customers report being asked to pay higher, said Ramree resident Ko Khant Htay.

“In Ramree, except for one shop, we are charged service fees in all the other shops. All the sub-agents charge service fees,” he said. “No shop charges service fees in Kyaukphyu, however,” he said.

While the fixed charge is K1,000 per transfer of K50,000, some agents are charging double, said Kyaukphyu resident Ko Aung Lin Soe.

The Wave Money Service Center said customers can file complaints at 09-79009000 in case they are overcharged. A customer service manager at Wave Money declined to respond when asked what actions would be taken against overcharging agents.

Speaking on condition of anonymity, a Wave Money agent in Sittwe said the company can terminate agent contracts for violations of regulations.

Private money handlers have resumed operations in Arakan State, but Wave Money is the preferred financial service among people in rural Arakan State for cash-out and cash transfer.

Wave Money said it facilitated K12 trillion ($8.7 billion) in total transactions during 2020 as the country’s residents increasingly began using digital financial services following the COVID-19 outbreak.